A company that produces DVDs has found that revenue from sal

A company that produces DVDs has found that revenue from sales of DVDs is exist5 per DVD. less sales costs of exist 100. Production costs are exist125, plus exist4 per DVD. Profit (P) is given by revenue (R) less cost (C), so the company must find the production level x that makes P 0. P = R - C Write an expression for revenue r, letting x represent the production level (number of DVDs to be produced).

Solution

Answer: x > 225 (As explained above)

If R is revenue, C_s is sales costs and C_p is production costs, we have from the given data:

P = R - C = R - (C_s + C_p) = 5x - (100 + 125 + 4x) = 5x - 100 - 125 - 4x = x - 225

For P > 0 => x - 225 > 0 => x > 225